Statement of Financial Position

Itemizes the final balance in each asset, liability and equity account for the company at a point in time.

Using a current/non-current presentation which classifies assets and shows net assets as follows:

Current assets + non-current assets – current liabilities – non-current liabilities = Net assets = Equity.

Liquidity presentation - is prepared based on the order of liquidity of each account.

If the company is being sold or is selling several assets.

Accounting standards require the entity to present the Statement of Financial Position using the current/non-current presentation except in circumstances where a liquidity presentation would make the financial information more relevant and reliable. For that exception, all assets and liabilities must be presented broadly in order of liquidity.

Current assets are those assets that the company expects to turn into cash (such as accounts receivable) or consume (such as cash at bank) within a 12-month period.

Will be sold or consumed during the next operating cycle of the company.
Are primarily held to be traded.
Are due to be realized (or fall due) within 12 months of the reporting date.
Are a cash or a cash equivalent

Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Other less current assets

This includes all bank accounts or immediately convertible to cash, such as short-term bonds, money market investments and negotiable instruments such as cheques.

Usually mainly made up of accounts receivable or debtors. Place accrued income here.

These are the main items that a company trades for sales.

This would include items such as prepaid rent and other prepaid expenses.

Biological assets such as livestock, other short-term investments, assets being held for sales, and current tax assets.

Non-current assets are assets that do not fit the current asset criteria and that the company intends to have the use of for a period of longer than 12 months to help generate income.

Trade and other receivables
Other investments
Property, plant and equipment
Intangible assets
Other less common non-current assets

Those not included as current assets.

Long-term investments might include government bonds, stock, pension funds and assets being held for sale.

This includes land, buildings, factory, machinery and furniture. The accumulated depreciation is usually shown in the notes to the accounts.

This might include goodwill, patents, trademarks, copyright and franchises.

Any biological assets not included as current assets; and deferred tax assets that occur if a situation arises where there is income tax recoverable.

Current liabilities are obligations that fall due within the next 12 months.

Will be paid off during the next operating cycle of the company.
Are primarily held to be traded.
Are due to be settled (or fall due) within 12 months of the reporting date.
Cannot be deferred for more than 12 months.

Bank overdraft
Trade and other payables
Current tax liability
Provisions
Short-term loans or borrowings

This is an arrangement with a bank to withdraw more funds than are contained in an account.

Usually mainly consisting of accounts payable or creditors. Also items such as wages payable and other accrued expenses.

This is the amount of income tax liability for the current financial year.

Non-current liabilities are obligations that do not fit the current liability criteria and which the business will be committed to for a period longer than 12 months.

Employee benefits
Provisions
Loans and borrowings
Mortgage
Other non-current liabilities

Such as long service leave.

Those not included as current liabilities.

Those not included as current liabilities.

Funds borrowed to purchase property.

Are deferred tax liabilities that occur if a situation arises where there is income tax payable.

Number of shares issued and fully paid.
Number of shares that have been authorized.
Par value per share, or that the shares have no par value (generally a statement is made that the company has neither of these).
Rights, preferences and restrictions, including restrictions on the distribution of dividends and the repayment of capital.

Notes which list the number of shares issued but not fully paid, a reconciliation of the number of shares outstanding at the beginning and end of the period, shares in the company held by the company or subsidiaries, and shares reserved for issue under options and contracts.

The notes disclose increases and decreases resulting from revaluations, and from impairment losses recognized or reversed in other comprehensive income. This shows detail of the fair value or historical cost of each type of asset and subtracts its accumulated depreciation, reconciling this with the final balance found in the Statement of Financial Position.

Recognized dividends paid during the year.
Unrecognized dividends recommended but not yet paid.
The amount of each dividend per share.
The total amount of each dividend.